Nxesi blames dept's mispending on property mismanagement

Thulas Nxesi largely attributed the irregular expenditure of public funds to poor management.

Public Works Minister Thulas Nxesi. Picture: EWN.

JOHANNESBURG - Public Works Minister Thulas Nxesi says over 70 percent of irregular expenditure by his department is related to property mismanagement.

Speaking in Pretoria earlier today, Nxesi said in most of the leasing and construction cases, proper procurement and tendering procedures were not followed by his officials.

The minister said he's shocked after learning of irregularities concerning the expenditure of more than R34 billion dating back as far as 2001.

"The value of irregular expenditure that is reported in the annual financial statements of both the main vote of the department and the property management has increased substantially to a combined figure of R34.9 billion. In a word, it's shocking."

Nxesi said several companies and officials are facing corruption and fraud charges for a range of transgressions, including the flouting of procurement rules.

He largely attributed the irregular expenditure of public funds to poor management.

"In fact, more than 70 percent of the business of the department is related to property management. Historically, this is an area that has been poorly managed."

The minister assured taxpayers that action will be taken against all those found guilty of crimes within his department.